That is no longer true: https://www.federalreserve.gov/monetarypolicy/muni.htm

  On April 8, 2020, the Board of Governors of the Federal Reserve System
  (the Board), by the unanimous vote of its five members and with the approval of
  the Secretary of the Treasury, authorized the establishment and operation of the
  Municipal Liquidity Facility (MLF) under section 13(3) of the Federal Reserve
  Act (12 U.S.C. § 343(3)). The MLF is intended to support lending to state, city,
  and county governments.
  
  Under the MLF, the Federal Reserve Bank of New York (Reserve Bank)
  will commit to lend on a recourse basis to a special purpose vehicle (SPV). The
  SPV will purchase eligible notes directly from eligible issuers at the time of
  issuance.
  
  [...]
  
  The Department of the Treasury, using funds appropriated to the Exchange
  Stabilization Fund under section 4027 of the Coronavirus Aid, Relief, and
  Economic Security Act (CARES Act), will make a $35 billion equity investment
  in the SPV in connection with the MLF.